ATLANTA, March 5, 2019 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC) announced today an acquisition for its European Automotive business.
Alliance Automotive Group (AAG), the Company's wholly-owned automotive distribution company based in London, U.K., has entered into a definitive agreement to acquire PartsPoint Group (PartsPoint). The transaction is expected to close on June 1, 2019, and is contingent upon satisfaction of customary closing conditions and receipt of applicable regulatory approvals.
PartsPoint Group, headquartered in Ede, Netherlands, is a leading distributor of automotive aftermarket parts and accessories in the Benelux. Through a network of one national distribution center, six regional warehouses and 147 branches, PartsPoint serves many thousands of customers across the Netherlands and Belgium, predominantly independent garages and wholesalers. The Company expects the acquired business to generate annual revenues of approximately $330 million (US$).
Paul Donahue, President and Chief Executive Officer of Genuine Parts Company, stated, "PartsPoint Group is a leading supplier of automotive parts and accessories in the Benelux marketplace, and we are pleased to expand our European footprint into this region with such an outstanding organization. We are excited for the opportunities we see in the Netherlands and Belgium, and we look forward to the many contributions the PartsPoint team will make in the years ahead."
Jean-Jacques Lafont, Chief Executive Officer of Alliance Automotive Group added, "PartsPoint Group is an excellent strategic fit for AAG and an important milestone in our growth strategy in Europe. PartsPoint has a strong and talented management team and we look forward to supporting their long-term growth plans. We welcome the addition of PartsPoint to AAG."
Forward Looking Statements
Some statements in this press release, as well as in other materials we file with the Securities and Exchange Commission ("SEC") or otherwise release to the public and in materials that we make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to the anticipated strategic benefits, synergies and other attributes resulting from this and other acquisitions, as well as future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, the Company's ability to successfully integrate PartsPoint Group and prior acquisitions into the Company and to realize the anticipated synergies and benefits; changes in the European aftermarket; the Company's ability to successfully implement its business initiatives in each of its three business segments; slowing demand for the Company's products; changes in national and international legislation or government regulations or policies, including new import tariffs and data security policies and requirements; changes in general economic conditions, including unemployment, inflation (including the impact of potential tariffs) or deflation and the United Kingdom's referendum to exit from the European Union, commonly known as Brexit; changes in tax policies; volatile exchange rates; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; labor shortages; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; the ability to maintain favorable vendor arrangements and relationships; disruptions in our vendors' operations, including the impact of tariffs and trade considerations on their operations and output, as required to meet product demand; the Company's ability to successfully integrate its other acquired businesses; failure or weakness in our disclosure controls and procedures and internal controls over financial reporting; the uncertainties and costs of litigation; disruptions caused by a failure or breach of the Company's information systems, as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2018 and from time to time in the Company's subsequent filings with the SEC.
Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other reports to the SEC.
About Genuine Parts Company
Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada, Mexico, Australasia, France, the U.K., Germany and Poland. The Company also distributes industrial replacement parts and electrical specialty materials in the U.S., Canada and Mexico through its Industrial Products Group. S.P. Richards Company, the Business Products Group, distributes a variety of business products in the U.S. and Canada. Genuine Parts Company had 2018 revenues of $18.7 billion. Further information is available at www.genpt.com.
About Alliance Automotive Group
Alliance Automotive Group is a leading distributor of light and commercial vehicle parts to the independent aftermarket in France, Germany, the U.K., and Poland, doing business under the Groupauto France, Précisium, Partners and Gef'Auto brands in France, Groupauto UK, UAN and FPS in the UK, Alliance Automotive Group Germany in Germany and Groupauto Poland in Poland. AAG serves approximately 40,000 garages with over 100,000 different parts for repair and maintenance from a network of more than 300 company-owned stores and approximately 1,800 affiliated outlets. Further information is available at www.allianceautomotivegroup.eu.
SOURCE Genuine Parts Company